Ottawa, Canada – Canada is ramping up support for its steel and lumber industries to counter the impact of US tariffs and strengthen the domestic market. Prime Minister Mark Carney announced the measures Wednesday, highlighting protections for workers and initiatives to boost local production.

Key Measures

• Steel import quotas for non-FTA countries will drop to 20% of 2024 levels (from 50%).
• Quotas for FTA countries will reduce to 75% of 2024 levels (excluding the US and Mexico under USMCA).
• Global 25% tariffs on targeted imported steel-derivative products.
• Freight rate cuts of 50% for inter-provincial transport of steel and lumber starting early 2026.
• Financial aid and incentives to support workforce, liquidity, and restructuring in affected companies.
• Promoting use of locally made steel and lumber in homebuilding projects.

The steel industry contributes over CAD 4 billion ($2.8bn) to Canada’s GDP and employs more than 23,000 people, but has been heavily impacted by Trump’s 50% steel tariffs and 45% tariffs on softwood lumber.

Context and Trade Tensions

Carney noted that decades of economic integration with the US have made Canada’s industries vulnerable. He emphasized that over 75% of exports—including steel, lumber, and aluminum—are directed to a single market.

Trade talks with the US stalled last month after Ontario ran ads criticizing Trump’s tariffs, which led to a cutoff of negotiations. Carney said he plans to speak with Trump during the FIFA World Cup 2026 draw in Washington on December 5 and is ready to re-engage on trade talks when the US is willing.

Impact on US Businesses

US companies are also feeling the pressure of tariffs. Deere & Co., the tractor manufacturer, expects a $1.2 billion pre-tax tariff impact in fiscal 2026, up from $600 million in 2025.